SAN JOSE, Calif. — PayPal says it is expanding its brick-and-mortar payment services to more than 7 million stores across the U.S. in a partnership with Discover.

EBay Inc.’s payments unit said Wednesday that retailers that take Discover cards will be able to process PayPal payments beginning next year. People will be able to pay using PayPal cards and later, mobile devices.

The move marks the latest step in PayPal’s push into physical retailers as it expands from offering online payments.

Earlier this year it unveiled a mobile payments service, PayPal Here, that lets businesses process credit card payments with smartphones. It rivals mobile payment services such as Square, which recently signed a deal to process payments at Starbucks locations.